Table of Contents

1. Introduction to Chandra Asri Petrochemical

2. Petrochemicals Industry Outlook

3. Key Investment Highlights

4. Attractive Growth Profile

5. Financial Highlights

1
1. Introduction to Chandra Asri Petrochemical

2
Chandra Asri – Indonesia’s Leading and Preferred
Petrochemical Company
Largest Integrated Petrochemical Producer in Indonesia
Largest integrated petrochemical producer in Indonesia and operates the
country’s only naphtha cracker, styrene monomer and butadiene plants
Market leadership in highly attractive Indonesia and SE Asia petrochemical market
̶ Market share of approximately 52%, 24%, and 29% of the domestic market
(including imports) in olefin, polyethylene, and polypropylene, respectively
Support from Barito Pacific Group and Siam Cement Group
Transformed in 2016 following the 4Q2015 Naphtha Cracker expansion,
resulting in Adjusted EBITDA increase, reinforced balance sheet, and a more
diversified product mix
̶ 2015 – 2016 Adjusted EBITDA growth of +229%; LTM EBITDA (as of 30 Jun
2017) peaked at US$ 580 million (1)
̶ Reduced debt and Debt / Adjusted EBITDA dropped to 0.8x as of FY2016 and
further to 0.6x as of 30 Jun 2017 (1)
Vital National Object status

CAP’s main integrated manufacturing complex

Stable and Robust Financials Supported by Strong Credit Strengths

Integration from upstream cracker to downstream polyolefin products

̶ Strategically located near key customers 2016 Revenue 1H 2017 Revenue
Low production cost base and operating efficiencies
̶ Benefit from scale of feedstock sourcing and stable supplier relationships Styrene Styrene
̶ Naphtha cracker utilisation rate of 98% in 1H2017 Monomer, Monomer,
15% Olefin, 18% Olefin,
Long-standing relationships with diverse customer base Butadiene 32% 31%
̶ No single customer accounts for more than 7.4% of consolidated revenue , 7%
̶ In 2016, 74% of products by revenue were sold to domestic market US$ Butadiene US$
1,930m , 12% 1,195m
Captive distribution network provides significant cost efficiencies
̶ Key customers integrated with CAP production facilities via CAP’s pipelines
̶ Provides significant cost efficiencies to key customers Polyolefin, Polyolefin,
46% 38%
New projects fueling strategic growth
̶ Projects include partnership with Michelin to expand downstream products,
new polyethylene plants, debottlenecking, and other efficiency
improvements
̶ Evaluation of a second petrochemical complex underway
3
(1) LTM figures are derived as follows: 1H2017 figure + 2016 figure – 1H2016 figure
25 Year Track Record of Successful Growth
CAP

510m
2011 2015
 Merger of CA and TPI
155m effective from 1 Jan 2011
 Completed cracker
expansion project and
(US$)

Adjusted
135m
2.1bn  Completed de-
bottlenecking to raise
TAM
2017
polypropylene capacity to
EBITDA 1.9bn
1.9bn 480 KT/A
 SCG Chemicals acquired
Total
23.0% of Company from 2017
assets Appleton Investments
 Upgrade of
2014 2015 2016 Limited, a wholly-owned
subsidiary of Temasek
2016 long-term
2007 corporate credit
2010 Holdings (Private) Limited,
rating from "B1"
 Added a furnace at its  Issued and 7.0% from Barito
to "Ba3" by
Pacific
naphtha cracker to increase
ethylene production to 600
inaugural
5-year
2015 Moody's in
2016 August 2017
2004 KT/A, propylene production to US$230m
1995  Public offering of  Completed
 Commercial
 Product 320 KT/A, pygas production Bond 2013 CAP I Bonds 2016 rights issue of
CA

expansion to 280 KT/A and mixed C4

production Received upgraded approximately
through production to 220 KT/A
begins at CAP
selling of
2011 corporate rating US$377 million
with initial  Acquisition of 100% shares of in September
Mixed C4 SMI from Moody’s from
cracker 2010 2013 B2 to B1 and 2017
capacity of 520 2009  Upgrade
 Strategic partnership in the synthetic revised rating
KT/A 2007 outlook from S&P corporate rating
rubber business with Michelin to
2004 establish PT Synthetic Rubber from Stable to from “idA+” to
1995 2009 Indonesia Positive B+. “idAA-“ by
1992 1993
 Increased  Commenced operations of our
Received idA+ Pefindo in
capacity of butadiene plant with a nameplate rating from Pefindo October 2017
1995 polypropylene
1992 1993 capacity of 100 KT/A  Obtained
 Increased plant to 480 corporate rating
 Started  Increased  Secured funding for cracker
capacity of KT/A of ‘BB-‘ by Fitch
TPI

commercial capacity of expansion:

polypropylene in October 2017
production of polypropylene − Limited public offering of shares
plant to 360
polypropylene plant to 240 with pre-emptive rights of
KT/A
comprising KT/A approximately US$127.9 million
annual capacity on the Indonesia Stock Exchange
of 160 KT/A
− US$265m Term-Loan facility

Track record of achieving operational and structured growth

4
Vision to be Indonesia’s Leading and Preferred
Petrochemical Company

1 Increase capacity and build on leading market position

Expand product offerings and further optimize integration along the

2 petrochemical value chain

3 Develop feedstock advantage to improve cost competitiveness

4 Develop and nurture human capital

Continue to leverage the Company’s unique infrastructure and customer service

5
to maintain premium value to customers

Maintain and further improve best-in-class operating standards, cost efficiency,

6
and safety, health and environment

5
Integrated Production of Diverse Products
Use of Goods (examples)
Capacity (KT/A)
Capacity
(KT/A) Polyethylene (336)
Naphtha
Ethylene (860) Styrene
 Naphtha Monomer (340)
consumption of
2,450 KT/A at full Merchant
capacity market (430)

Propylene (470) Polypropylene (480)

Pyrolysis
Gasoline (400)

Mixed C4 (315) Butadiene (100)

Support Co-generation Utilities & Water Jetty

facilities plants facilities facilities facilities
(

CAP’s products encompass a wide range across the consumer products value-chain, and its
leading position and strategic location enhances its competitiveness

6
2. Petrochemicals Industry Outlook

7
Ethylene World Supply Growth and Capacity
Ethylene World Supply Growth
(million tons) (Operating rates)
250 Actual Forecast 100%

200
90%
150

100
80%
50

0 70%
2009 2011 2013 2015 2017 2019 2021 2023
Ethylene Consumption Total Capacity (with Unsactioned Capacity) Total Capacity (with No Unsactioned Capacity)
Operating Rates (with Unsactioned Capacity) Operating Rates (with No Unsactioned Capacity)

Ethylene Production Capacity: 218MT in 2023 New Capacity by Region: 25MT (2017 – 2023)
- Global ethylene demand
CTO/MTO and forecasted to grow at c.3.2% Asia Pacific (exc.
SEA and China)
Shale Gas
Others CAGR between 2017 – 2023 SEA
5% 1%
6% - As many as 20-26 new ethylene 9%
plants expected to be build
- 7 – 8 years required from
Americas
planning to startup Middle East/Africa
34%
17%

Naphtha

Naphtha/Liquids
NGLs Cracking Cracking
44% 45% Europe
19%
China
20%

8
The Petrochemical Industry is in a Long Term Cyclical
Phase

Ethylene Spreads Over Naphtha

Gap over naphtha (US$/t) % Utilisation

700 100%

600 Average 2013-2016: US$567 Average 2017-2019: US$568

90%
500
Average 2020-2023: US$424
400
80%
Average 2009-2012: US$306
300

200
70%

100

0 60%
2009 2010 2011 2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F 2022F 2023F

Ethylene Delta Over Net Raw Material Cost Global Operating Rates with Unsanctioned Capacity
Global Operating Rates with no Unsanctioned Capacity

Petrochemical industry profitability to continue on path of sustainable recovery post 2012 as a

result of improving demand and lower capacity addition
Note: Forecast price is based on Brent Crude at US$55 (2017), US$65 (2018), US$70 (2019 – 2025) per barrel (constant 2016 dollars)
Source: Nexant

9
Strong Demand Growth for Petrochemicals in Indonesia
Ethylene (CAGR ’17 – ’23) Propylene (CAGR ’17 – ’23) Butadiene (CAGR ’17 – ’23)

3.2% 3.1% 5.4% 17.7%

2.4%
3.4%

1.7% 5.5%
2.4%

Global SEA Indonesia Global SEA Indonesia Global SEA Indonesia

Polyethylene (CAGR ’17 – ’23) Polypropylene (CAGR ’17 – ’23) Styrene Monomer (CAGR ’17 – ’23)

4.7%
4.4% 4.2% 10.5%
3.9%
3.4% 3.6%

2.3%
1.6%

Global SEA Indonesia Global SEA Indonesia Global SEA Indonesia

Petrochemical demand in Indonesia expected to outpace other regions

Source: Nexant

10
3. Key Investment Highlights

11
2. Key Investment Highlights

1 Attractive industry outlook

Well-positioned to benefit from attractive Indonesian growth

2 fundamentals

Indonesia’s leading petrochemical producer with a diverse

3 product portfolio

4 High degree of operational integration

Diversified customer base and strategically located to supply

5 key customers

6 Diverse and secured sources of feedstock and raw materials

7 Strong shareholder support

Highly experienced management team with proven track record of

8 managing and expanding operations

12
1 Attractive Industry Fundamentals Providing Tailwinds
for Petrochemicals Demand Growth in SEA
Polyolefins Demand in SEA Expected to Outpace Global
Market Growth… Polyolefin Spreads Expected to Remain Resilient
(US$/t)
Polyethylene consumption growth (2017 – 2023E CAGR) 850

4.4% 800
3.4% 3.9%
750
700
Global SEA Indonesia 650
600
Polypropylene consumption growth (2017 – 2023E CAGR) 550

4.7% 500
3.6% 4.2%
450
400

Global SEA Indonesia 350

2009 2011 2013 2015 2017F 2019F 2021F 2023F

…while Asian Naphtha Prices Remain Below Historical LDPE - Naphtha LLDPE - Naphtha
HDPE - Naphtha PP - Naphtha
Average
(US$/t, real prices)
(US$/t) Last 5 Years Average Next 5 Years Average
1200
LDPE – Naphtha 662 754
900 Past 5-year average price: US$713/t
LLDPE – Naphtha 631 705
600
HDPE – Naphtha 630 689
300
2009 2011 2013 2015 2017F 2019F 2021F 2023F PP – Naphtha 582 583

Average spreads of key products will be continue to be resilient

Source: Nexant
13
2 Well-Positioned to Benefit from Attractive Indonesian
Macroeconomic Growth and Consumption Trends

GDP Growth CAGR (2017 – 2020F)(1) Polyolefins Consumption per Capita(2)(3)(4)

10%
7.7% Bubble size indicates
6.8% demand in 2016, million tons

Projected CAGR 2017-2023F

6.3% 6.2% 8%
5.4% India 9
4.8%
6%
Brazil 4
3.3% China
Indonesia 3
2.6% 4 8 46
2.0% 4% FSU 2
1.6% 1.6%
SEA
US
2% 28 CE/WE 19
Japan
5 24
0%
0 10 20 30 40 50 60 70
Consumption per capita (2016) kilogram per capita
Foreign Direct Investment in Indonesia (2012 – 2016)
(US$bn)

Domestic trends

Rising Population Quality of Life

Product Substitution Consumer Spending

Urbanization Manufacturing

(1) GDP, constant prices; IMF World Economic Outlook Database, October 2017
(2) SEA excludes Indonesia
(3) Polyolefins include HDPE, LLDPE, LDPE and PP
(4) FSU means Former Soviet Union, CE means Central Europe, WE means Western Europe 14
Source: Nexant Industry Report, IMF, BKPM
2 Strong Demand Growth for Petrochemical Products in
Indonesia
Total Demand Growth (1)
End Markets (2017F – 2023F CAGR)

 Plastic films
 Containers 4.4%
Polyethylene PE
 Bottles 3.4%
 Plastic bags

 Packaging
 Films and sheets 4.7%
Polypropylene  Fibers and filaments PP
3.6%
 Toys
 Automotive parts

 Drinks cups
 Food containers 10.5%
Styrene Monomer SM
 Car interiors 1.6%
 Helmet padding

 Vehicle tires 17.7%

BD
Butadiene  Synthetic rubber 2.4%
 Gloves and footwear
Indonesia Global

Petrochemical products are fundamental to the production of a wide variety of consumer and
industrial products, such as packaging, containers, automotive and construction materials
(1) By volume
Source: Nexant

15
2 Petrochemical Market in Indonesia will Continue to See an
Increasing Gap Between Supply and Demand

Ethylene Propylene Polyethylene

(KT/A) 2,357(1) (KT/A) (KT/A)

1,900(1)
1,078 1,078 1,078 1,824
1,625
1,638 1,658 899 1,317
1,384 811 876 1,231 1,231
860 890 900 833

(457)(1) 267 202 179

(484) (394)
(524) (593)
(748) (758)
2016 2020 2023 2016 2020 2023 2016 2020 2023

Polypropylene Butadiene Styrene Monomer

(KT/A) (KT/A) (KT/A)

2,127
1,894
1,513 165 178
137 137 341 366 365 347
765 845 845 100
64 255
185

36
156
(28) 111
(748) (41)
(1,049) (1,282) 18
2016 2020 2023 2016 2020 2023 2016 2020 2023

Capacity Consumption Gap

Indonesia is expected to remain in deficit and dependent on imports

(1) Includes unsanctioned capacity of 1MT

Source: Nexant
16
3 CAP is the Indonesian Market Leader
1 Largest Petrochemical Company in Indonesia(1) Olefin Top 10 South East Asia Producers(3)
('000 tons per year)

Olefin Polyethylene 5,000

4,000
3,000
7
Pertamina
CAP LCT(2) CAP 2,000
24% 24% 1,000
52% 31%
0

PTTGC

SCG

PCG

Pertamina
ExxonMobil

IRPC
Shell/QPI

Lotte Chemical

Sumitomo
Chandra Asri

Titan
Import
24% Import
45% Ethylene Propylene
Ethylene Capacity Addition Propylene Capacity Addition

Total Supply: 2.6M tons Total Supply: 1.4M tons

Polyolefin Top 10 South East Asia Producers(3)
Polypropylene Styrene Monomer ('000 tons per year)
5,000
Polytama 4,000
15% CAP CAP 3,000
29% 2,000
6
Pertamina 100%
3% 1,000
0

SCG

PTTGC

PCG
Lotte Chemical

TPC

IRPC
ExxonMobil

Chandra Asri

Chevron Phillips
JG Summit
Titan
Import
53%
HD LL LD PP Polyolefins Capacity Addition
Total Supply: 1.6M tons Total Supply: 0.3M tons

CAP is a market leader in Indonesia across all of its products, and a leading player in the region

(1) By production excluding fertilizer producers

(2) Refers to Lotte Chemical Titan
(3) Chandra Asri capacity is inclusive of SCG’s equity in Chandra Asri 17
Source: Nexant
3 CAP is Indonesia’s Largest Petrochemical Producer

Capacities of Petrochemical Producers in Indonesia (March 2017)

Capacity
('000 tons per year) Polytama Others Total

Ethylene 860 860

Propylene 470 608 1,078
LLDPE 200 200 400
HDPE 136 250 386
Polypropylene 480 45 240 765
Ethylene Dichloride 644 370 1,014
Vinyl Chloride Monomer 734 130 864
Polyvinyl Chloride 507 95 202 804
Ethylene Oxide 240 240
Ethylene Glycol 220 220
Acrylic Acid 140 140
Butanol 20 20
Ethylhexanol 140 140
Py-Gas 400 400
Crude C4 315 315
Butadiene 100 100
Benzene 125 400 525
Para-Xylene 298 540 838
Styrene 340 340
Total 3,301 450 1,076 240 1,885 595 940 962 9,449

CAP offers the most diverse product range and is a dominant producer with market share of approximately 52%, 24%,
and 29% of the domestic market (including imports) in olefin, polyethylene, and polypropylene, respectively
Source: Nexant
18
4 Highly Integrated Production Process with Operational
Flexibility

Cogen  Naphtha cracker, polyethylene and butadiene plants

Naphtha
Cracker
Fuel Gas 51.56MW GTG source approximately half of the power from PLN and
& 31.25MW STG the remaining half from the GTG, with the STG being used
HDPE & LLDPE as backup
Ethylene
Train 1  Polypropylene, styrene monomer and butadiene plant
source power primarily from PLN. Two emergency
HDPE Train 2
generators provides part of the power required for the
Steam & Electricity
styrene monomer plants

2 emergency
SM Plant 1 generators
 One of our polyethylene plants is a swing plant that
SM Plant 2 allows production to be switched between LLDPE and
HDPE based on market demand

 Integrated production system allows improvement of

PP Train 1 feedstock yields and lower unit cost

Propylene PP Train 2
 Specialised software considers variables such as
PP Train 3 product prices, freight, product yield of naphtha and
naphtha prices to determine the optimum ratio of
naphtha grades required
Pyrolysis
Gasoline

 Modular set-up allows units to operate independently,

Mixed C4 BD Plant
thus minimizing production disruptions

Intermediate product
Process plant in Cilegon
Process plant in Serang

Integration allows us to take advantage of operational savings and synergies, and provides
flexibility to respond to changes of key products
19
5 Strategically Located to Supply Key Customers

CAP’s Integrated Petrochemical Complexes

Rhone Poulenc SBL

Sulfindo Adi. Sulfindo Adiusaha
EDC, VCM NAOH, CL2
Santa Fe
Sulfindo Adi. PVC
Showa Esterindo Redeco Styrene Monomer
Polychem Plant
Puloampel- Cont Carbon CB
Sintetikajaya
Trans Bakrie Capacity 340 KT/A
Serang
Indochlor Risjad Brasali
Merak EPS, SAN
Multisidia Golden Key ABS
Integrated Complex
 Main Plant Capacity (KT/A) Buana Sulfindo
− Ethylene: 860
− Propylene: 470
− Py-Gas: 400
Prointail
Unggul Indah AB
Statomer PVC
N
PIPI PS and SBL
− Mixed C4: 315 Mitsubishi Kasei

− Polyethylene: 336
TITAN PE
− Polypropylene: 480 Amoco Mitsui UAP
 Butadiene Plant: 100 KT/A Cabot Dow Chemical
 On-Site Power Siemens KS Air Liquide Indonesia
Hoechst
ARCO PPG
Polyprima PTA Cilegon
Polypet PET
Asahimas
Lautan Otsuka
Dongjin Cilegon
NSI
Sriwie Jakarta
Anyer
Integrated Complex
Jetty Toll Road CAP Pipeline Road Customers with pipeline access

Location proximity and well established pipeline ensures excellent connectivity to key customers. This coupled with
reliability of supply lead to premium pricing, with integration of facilities creating significant barriers to entry.
20
5 Diversified Client Base of Industry Leaders
Sales & Marketing Strategy Top 10 Customers (2016)
% of Customer
 Long term relationships with key customers Customer Products Revenue Since Location
 Connected to production facilities via CAP’s pipeline (ethylene and Customer 1
Polyethylene,
7.4% 1995 Indonesia
propylene customers) polypropylene
Ethylene, propylene
 Network of 300+ customers, with diversified clientele Customer 2
and styrene monomer
5.1% 2002 Japan

– Top 10 customers account for only 43.6% of revenues in 2016 Styrene monomer and
Customer 3 5.1% 2004 Indonesia
butadiene
– Majority of top 10 customers have been with CAP for >10 years
Polyethylene,
Customer 4 4.6% 1995 Indonesia
 Trademarked brand names polypropylene
– “Asrene” for polyethylene products, “Trilene” for polypropylene Customer 5 Ethylene 4.5% 1995 Indonesia
products, “Grene” for resin products Customer 6 Ethylene 4.1% 2007 Indonesia
Butadiene, raffinate,
 Strong marketing and distribution platform with nation-wide network Customer 7 3.9% 2002 Singapore
styrene monomer, C4
– Short delivery times result in premium pricing over benchmarks Customer 8 Pygas 3.7% 2011 Thailand
Customer 9 Propylene 2.8% 2011 Indonesia
– Onground technical support Customer 10 Ethylene 2.5% 2006 Indonesia
Top 10 Customers % of Revenue 43.6%

Sales Breakdown (2014 – 2016)

(US$m)
Domestic Export

514 171 610 1,303 869 885 419 256 289 219 78 139 2,455 1,374 1,923
2% 2% 4%
26% 23% 17% 26%
41% 42% 35% 31%
51%
81% 82% 80%
98% 98% 96%
74% 77% 83% 74%
59% 58% 65% 69%
49%
19% 18% 20%

2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016

Olefins & by-products(1) Polyolefin Styrene Monomer & by- Butadiene & by-products Total
products
(1) Includes ethylene, propylene, and by-products such as pygas and mixed C4
- Propylene: Majority used as feedstock for polypropylene production internally
- Mixed C4: Majority used as feedstock for butadiene production internally
- Pygas: Primarily sold to SCG 21
6 Stable and Flexible Feedstock Supply
Feedstock Procurement Overview Main Raw Materials (2016)
 Long-standing stable supplier relationships
Naphtha/
100%
 No material feedstock supply disruption historically Condensate

 Flexibility in feedstock purchasing (spot vs. contract) Benzene 100%

− Avoids single supplier dependence

Propylene 40% 60%
− 76% of naphtha under contract with major oil trading companies
in 2016 Ethylene 100%
 Procurement synergies with SCG
C4 100%
 Substantial naphtha storage capacity to support 27 days of
operations
Externally Sourced Internally Sourced

Naphtha Supply (2016) Suppliers of Naphtha (2016)

Supplier US$m %
30% 30% 24%
Vitol Asia Pte Ltd 304.2 35.6%
Marubeni Petroleum C Ltd 237.5 27.8%
SCG Chemicals Co. Ltd 81.8 9.6%
76% Chevron U.S.A. Inc 78.4 9.2%
70% 70%
Shell International Eastern Trading 69.4 8.1%
Shell MDS (Malaysia) Sendirian 26.2 3.1%
Konsorsium PT. Titis Sampurna 22.0 2.6%
2014 2015 2016 PT Surya Mandala SaKTi 3.2 0.4%
PT Sadikun Chemical Indonesia 0.5 0.1%
Contract Purchase Spot Purchase
Others 31.6 3.7%
Total 854.9 100.0%

Customer-centric approach has resulted in long-standing relationships

22
7 Strong Commitment from Shareholders
Shareholder Structure (as of 30 Sep 2017)

Prajogo Marigold
Public
Pangestu(1) Resources(2)

41.51% 14.11% 4.75% 30.57% 9.06%

Barito Pacific Key benefits of partnership

 Indonesia based conglomerate with business interests in property,  Barito Pacific is committed to the growth and development of CAP
timber, plantation, power generation and petrochemicals − Available land for expansion
− Financial commitment (e.g. full subscription to 2013 rights offering)

Siam Cement Group Key benefits of partnership

 Thailand’s largest industrial conglomerate and Asia’s leading  Production know-how and sharing of best operational practices
chemicals producer  Raw material procurement savings
 Invested 30% in CAP in 2011  Sales and marketing collaboration
 Second largest olefins and polyolefins producer in South East Asia  Access to Thai financial institutions
 Accelerate CAP’s expansion plans

Strong backing from long term marquee strategic regional investors committed to the
development of the business
(1) Owns 69.23% of PT Barito Pacific Tbk as of 30 Sep 2017
(2) Subsidiary of PT Barito Pacific Tbk

23
8 Strong Management Team with Substantial Industry
Experience

Board of Commissioners

DJOKO SUYANTO TAN EK KIA HO HON CHEONG AGUS SALIM LOEKI SUNDJAJA CHAOVALIT CHOLANAT
President Commissioner VP Commissioner Commissioner, PANGESTU PUTERA EKABUT(1) YANARANOP(1)
Independent Independent Independent Commissioner Commissioner Commissioner Commissioner
Commissioner Commissioner Commissioner

2 years in Industry 44 years in Industry 2 years in Industry 11 years in Industry 15 years in Industry 11 years in Industry 30 years in Industry
2 year with CAP 6 years with CAP 2 years with CAP 11 years with CAP 15 years with CAP 5 years with CAP 5 years with CAP

Board of Directors

ERWIN CIPUTRA KULACHET BARITONO LIM CHONG THIAN SURYANDI PIBOON FRANSISKUS RULY
President Director DHARACHANDRA(1) PRAJOGO Director of Finance Director of Human SIRINANTANAKUL(1) ARYAWAN
VP Director of Operations PANGESTU Resource and Corp. Director of Director of Monomer
VP Director of Polymer Administration, Manufacturing Commercial
Commercial Independent Director

13 years in Industry 23 years in Industry 12 years in Industry 37 years in Industry 27 years in Industry 24 years in Industry 15 years in Industry
13 years with CAP 1 year with CAP 12 years with CAP 12 years with CAP 27 years with CAP 1 year with CAP 15 years with CAP

(1) Representative of SCG

24
8 Strong Track Record of Delivering Operational
Excellence and Performance
Naphtha Cracker Utilization(1)

98% TAM/ Expansion tie-ins: Q4/2015

94% 99% 103% 100%
90% 97% 98% 97% Ramp-up of new capacity: Q1/2016 97%
92%
82%
74% 76%
66% 65%
57%

11%

2014 2015 2016 1H2017 1Q2014

2Q2014

3Q2014

4Q2014

1Q2015

2Q2015

3Q2015

4Q2015

1Q2016

2Q2016

3Q2016

4Q2016

1Q2017

2Q2017
Polyethylene Plant Utilization Polypropylene Plant Utilization Styrene Monomer Plant Utilization Butadiene Plant Utilization

98% (2)
99% 96% 116%
92% 92% 103%
86% 89%
82% 88%
67% 74% 79%
69%

47%

2014 2015 2016 1H2017 2014 2015 2016 1H2017 2014 2015 2016 1H2017 2014 2015 2016 1H2017

Plant utilization has remained high due to our operational process optimization initiatives
(1) In September to December 2015, we conducted a scheduled TAM and expansion tie-in-works in conjunction with our cracker expansion project, which resulted in the shutdown of our cracker facility for
85 days and limited our production capacity for 2015. 2016 utilisation was reduced due to ramp-up in 1Q 2016
(2) Lower utilization due to unscheduled maintenance outages, the impacts of which were not material
25
8 Strong Success of Both Vertical and Horizontal
Expansion
(KT/A)
 Successfully acquired and integrated SMI and TPI
Cracker Merger with
expansion & TPI & BD Plant Cracker
Acquisiton Increase PE operation expansion
of SMI Capacity
 Expanded naphtha cracker in 2015 to achieve
economies of scale and take advantage of significant
ethylene shortage in Indonesia

3,301 3,301
− Mechanical completion on 9 Dec 2015, on time and
625 within budget (c. US$380m)
2,676
2,576
100
C2: ∆260KT
BD: ∆100KT C3: ∆150KT
496
2,080 − Total actual project cost in line with budget (c.
Pygas:∆120KT
US$380m)
PE: ∆16KT C4:∆95KT
570
1,510 PP: ∆480KT(1)

C2: ∆80KT − Achieved high utilization rates

C3: ∆50KT
Pygas:∆60KT
C4:∆40KT
SM: ∆340KT  Currently undertaking next stage of expansions and
growth

2005 2007 2011 2013 2016 2016

Expansion of production capacity and product range has enabled us to maintain our market
leading position
(1) Represents addition to capacity due to merger with TPI that had installed propylene capacity of 480 KT/A at the time of merger 26
4. Attractive Growth Profile

27
Strategic Growth via Expansion and Debottlenecking
(Excluding Second Petrochemical Complex)

SSBR PE expansion C2, C3, MTBE

operation, BD & PP Debotlenecking and Butene-1
expansion

2016 – 2020
CAGR: 6.2%

C2: ∆40KT
C3: ∆20KT
PE: ∆400KT
SSBR: ∆120KT MTBE: ∆130KT
PP: ∆110KT
BD: ∆37KT B1: ∆43KT

After doubling the size of production capacity over historical 10-yrs, expected further growth in
the next 5-yrs will come from several expansion & debottlenecking initiatives.
Note:
SSBR – Solution Styrene Butadiene Rubber PP – Polypropylene 28
BD Expansion - Butadiene Plant Expansion MTBE - Methyl tert-butyl ether
PE - Polyethylene C2 / C3 – Refers to furnace revamp
Strategic Growth via Expansion and Debottlenecking
Butadiene Plant Expansion
 Increase BD capacity by 100 KT/A to 137 KT/A
 Rationale:
− Add value to incremental C4 post 2015
cracker expansion
− Avoid opportunity loss of exporting excess C4
− Enjoy BD domestic premium and fulfill SRI’s
BD requirement
 Proposed start-up: 2Q2018
 Estimated cost: US$ 41.2 million
Additional Expansion and Product Offering Initiatives
PP Debottlenecking
 Debottleneck PP plant to increase capacity by
110 KT/A from 480 KT/A to 590 KT/A
 Rationale:
− Demand and supply gap for PP expected to
widen in Indonesia
− Opportunity to increase PP sales
 Proposed start-up: 3Q2019
 Estimated cost: US$ 35.5 million
MTBE and Butene – 1 Plant
 Production of 130 KT/A and 43 KT/A of MTBE
and Butene-1, respectively
 Rationale:
− Secure supply of MTBE and Butene-1 which
are used in the production of Polyethylene
− Excess demand for MTBE in Indonesia
 Proposed start-up: 3Q2020
 Estimated cost: US$ 86.8 million
Increase Production Capacity
New Polyethylene Plant
 New facility of total 400 KT/A to produce LLDPE,
HDPE and Metallocene LLDPE
 Further vertical integration
 Rationale:
− Further vertical integration;
− Protect and grow leading polymer market
position in Indonesia
 Proposed start-up: 4Q2019
 Estimated cost: US$ 347.0 million
Second Petrochemical Complex
 Expected to conduct feasiblity study for the
construction and operation of second integrated
petrochemical complex
 Complex expected to comprise:
− 1,000 KT/A ethylene cracker
− Various downstream derivative products
 Set up new company (PT Chandra Asri Perkasa)
to undertake new project
 Shareholding structure yet to be finalized and
CAP is in discussion with various third parties
 There is land available adjacent to main
petrochemical complex which would be available
for future acquisition as necessary
Furnace Revamp
 Increase cracker capacity by modifying heat
internals to increase ethylene capacity from 860
KT/A to 900 KT/A and propylene capacity from
470 KT/A to 490 KT/A
 Proposed start-up: 1Q2020
 Estimated cost: US$ 45.0 million
Expand Product Offering by Moving
Downstream
Synthetic Rubber Project (through SRI JV)
 Part of downstream integration strategy and
efforts to produce higher-value added products
 Partnership with leading global player Michelin
(ownership 55:45%)
 Production capacity: 120 KT/A
 Proposed start-up: 1Q2018
 Estimated total project cost: US$570.0 million
(fully funded)
29
5. Financial Highlights

30
Prudent Financial Policies

 Maintain natural economic hedge as underlying sales and majority of costs and borrowings are
denominated in US$
Foreign Exchange  Treasury risk management on Rupiah currency risks:
− Sales are hedged via pricing to customers and forward swaps with reputable banks
− Minimum Rupiah cash holdings of up to 10 – 15% of idle cash to meet operational needs

 Maximum total debt to capitalization of 40% on sustainable basis

Leverage
 Maximum Net Debt / Adjusted EBITDA of 3.0x

Coverage  Minimum Adjusted EBITDA / Interest cover of 3.0x

Liquidity  Seek to maintain minimum cash of US$100m at all times

Return on Capital  Seek minimum 15% IRR for new investments

 Payout in the amount of c. 40% of consolidated net profit subject to:

− Liquidity, leverage and reserves
Dividend Policy
− Financial performance / sustainability
− Projected operational and capital expenditure

31
Resilient Revenue Driven by Diverse Product Portfolio and
Increased Volumes

Revenue by Product Segments Sales Volume

(US$m)
(KT)

2,460
5
1,908
219
85

419 1,930 277

1,572
7
139 82

289 257 427

1,378 1,173
4 46
78 1,031
1,195
5 471 230 60
1,303 256
147
885 316 172
217 34
449 225
236
314
869 456 147
28 153 5
130
198 227
610 59
514 32 381
370 107
190 32 233
171 82
2014 2015 2016 1H2017 2014 2015 2016 1H2017
Ethylene Propylene Py-gas
Mixed C4 Polyethylene Polypropylene
Styrene Monomer Butadiene

Note: TAM in 2015 and ramp-up in 2016.

32
Strong Gross Margins Reflecting Improved
Supply/Demand Balance & Higher Utilization Rates

Olefins Polyolefins

32.2% 32.0%
27.2% 28.2%

15.8%

2.0% 7.0%
(0.9%)

2014 2015 2016 1H2017 2014 2015 2016 1H2017

Styrene Monomer and by-products Butadiene and by-products

8.7% 16.9%

7.1% 11.1%

5.0%
2.9%

1.7%
(5.1%)

2014 2015 2016 1H2017 2014 2015 2016 1H2017

33
 Strong Financials Further Enhanced by Economies of
Scale

Gross Profit Adjusted EBITDA (unaudited)

494 Adjusted
EBITDA 6% 11% 26% 25%
+239% margin
yoy 510
+229%
292 yoy
295
146
118 155
135

2014 2015 2016 1H2017 2014 2015 2016 1H2017

Net Profit Cashflow from Operations, Capex

Net Profit
1% 2% 16% 15%
Margin CFO Capex (unaudited)

476

300
194 224
174 180
116 105 73 69
18 26

2014 2015 2016 1H2017 2014 2015 2016 1H2017

34
Strong Balance Sheet Supported by
Financial Profile Strengthening

Cash Balance Debt and Net Debt

(US$m) (US$m)

548
491
Rights 451 425
Issue: 373
299 377 *Net cash
283 position after
208 Rights Offering

161
97 126
212

2014 2015 2016 1H2017 2014 2015 2016 1H2017

Adjusted EBITDA / Finance Costs (1) Leverage Ratios (2)

(x)

16.0x 16.5x
3.6x 3.5x
0.8x 0.6x
2.9x
2.1x
6.9x 36% 38% 0.2x 0.3x
4.2x Min Max 27% 24%
3.0x 40%

2014 2015 2016 1H2017 2014 2015 2016 1H2017

Issuer’s Internal Financial Policy Debt to Capitalisation Debt to Adjusted EBITDA
Net debt to Adjusted EBITDA Issuer’s Internal Financial Policy
(1) For 1H2017 calculated as LTM Adjusted EBITDA divided by LTM Finance Costs; LTM figures are derived as follows: 1H2017 figure + 2016 figure – 1H2016 figure
(2) Debt to Capitalisation calculated as total debt divided by (total debt + equity). Debt to Adjusted EBITDA calculated as Total Debt divided by Adjusted EBITDA. Net Debt to Adjusted EBITDA calculated
as Net Debt divided by Adjusted EBITDA. Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA for 1H2017 calculated as Total Debt divided by LTM Adjusted EBITDA and Net Debt divided by
LTM Adjusted EBITDA respectively; LTM figures are derived as follows: 1H2017 figure + 2016 figure – 1H2016 figure 35
Capital Expenditure Plan to Pursue Value-Accretive
Growth

Capex Plans Breakdown by Year 2017 – 2019 (US$m) Sources of Funding

 Internal generated cash flows

534

 Proceeds from Rights Issue

398
303
 Debt drawdown
154
253

81 39 30
45 42
9
24 10
11
62 16
12
8
98 137
63
19 23 -
2017F 2018F 2019F
BD expansion PE expansion
PP expansion Furnace Revamp
Others/TAM MTBE & Butene-1
New cracker initial spend

Estimated US$1.2b over next 3 years, mainly for Expansion and Debottlenecking
36